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Turns ex-bonus today...

About the stock: Easy Trip Planners or EaseMyTrip.com (EMT) is the fastest growing and only profitable company in the online travel portal in India. The company offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets and bus tickets.

* Airline tickets accounted for 94.0% of revenues (pre-Covid levels) while hotels and other services contributed 5.4% and 0.6% of revenues, respectively

Turns ex-bonus today

The company made an announcement of bonus shares on January 12, 2022. The ratio was one bonus share for every one equity shares, 1:1. The record date for the same is March 2, 2022 while the ex-date for the same is today, February 28, 2021 (March 1 being a holiday). Consequently, Easy Trip Planners share price, as per previous closing price, has adjusted to | 274/share from | 549/share. Accordingly, our target price stands revised to | 335/share. We maintain our BUY recommendation on the stock

Key triggers for future price performance:

* Online travel market in India is set to double over the next five years to $31 billion in FY25E, growing at 14% CAGR from FY20 levels

* Lean cost model and no convenience fee strategy remain key pillars supporting such rapid, profitable growth. This has also led to stickiness by customers with healthy repeat transaction rate of ~86% in the B2C channel

* Now, with airlines allowed to operate with their full capacity, we expect further traction in the company’s revenues and profitability, going ahead

* Further benefits would accrue from segments like international air, hotels and bus booking over the next three to four years, which are high margin business but currently having online penetration below 20% levels

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